Cru Computer Rentals

There are several ways worth considering improving the current situation, such as by using a collocation of adopting different rental terms of 4 weeks, 8 weeks, and 12 weeks. However, the proportions of the rental terms need to be chosen carefully. Below are three options for consideration: •Option A: capture 60% of the four-week market, 30% of the eight-week market, and 10% of the twelve-week market; or •Option B: capture 40% of the four-week market, 40% of the eight-week market, and 20% of the twelve-week market; or •Option C: capture 20% of the four-week market, 50% of the eight-week market, and 25% of the twelve-week market. Two factors are also added as the prerequisites for better analysis: 1)Assume that operations will be able to ensure that all buffer sizes are the same as they were last year for all three options (status 20 buffer continues at two weeks) 2)Assume that operations will be able to ensure that the time spent in all buffers is the same as it was last year For a 4-week rental term, there would be $40/unit revenue per week with market demand of 1,500 units per week. For an 8-week rental term, there would be $30/unit revenue per week with market demand of 1,000 units. Finally for a 12-week rental term, there would be $25/unit revenue per week with market demand of 600 units per week. Therefore, the detailed calculation for the two situations can be shown below: Computer rental units per week:

...inventory and cycle time measures for relevant process steps located in Exhibit B.
2. What do you think about the decision to launch a sales drive in 1997? What actions would you suggest that Richard focus on to improve performance at CRU? Give a concrete plan with anticipated benefits.
The sales drive plan failed to take into account the economics of their CRUs business radically reducing profits. As average rental weeks decreased (see Exhibit A), the incremental inventory required to support CRUs stocking policy increased inventory by roughly 18% over last year's values. It also accelerated the rate of receipts and the onerous costs associated with processing damaged returns. Ultimately these costs drove CRUs profits into negative territory forecasted to produce a net profit of -4.6% over a 52 week period.
Rather than focus on increasing revenue, Richard should work to make some operational improvements. Using last year as a baseline, by eradicating the misclassification of non-defectives in the Receiving Department, Richard stands to
reduce the costs associated with running his business by roughly $13k. Moreover, by reducing misclassification, Richard will also reduce the amount of inventory required to run his business by 180 computers reducing depreciation expense.
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Additional gains could be made by improving inventory management. Rather than requiring two weeks of inventory to fill available demand,...

...The focus of the CRUComputerRentals case is the declining profitability of the business. Richard Sarkis, the company’s general manager, first noticed a problem at the beginning of this year when demand fell from 1,000 rentals per week to only 600 units per week, a 40% decline. Obviously, less demand means less revenue and profit unless action is taken. His challenge was to find a way to keep the company profitable despite the changing environment. With this in mind, Mr. Sarkis developed a marketing plan to generate more sales from the 4 week (shorter rental time) market. This increased sales but somehow managed to decrease profitability even further. To understand how this is possible we have to understand what generates the company’s profit besides sales, also known as the company’s operations.
The driving force behind all companies is sales. Without sales, there is no incoming money and therefore no company at all. Thus, the first aspect of operations is understanding sales. Sales for CRU are generated by renting computers to companies or individuals for a specified period of time for them to return the units afterward. Last year, an average week generated 1,000 unit rentals at $30 per unit. The average rental time was 8 weeks. This means that at any given time there were 8,000 units rented out to customers, generating around $240,000...

...﻿Case: CRUComputerRentalCRUComputerRentals is a national computerrental company that has seen rapid growth since its inception in 1990. The company purchases computers, printers, monitors, and other peripherals and rents them out both for the long term and short term. CRU’s sales have begun to increase from the previous quarter, but profitability continued to decline. Although revenue was increasing, the decline in profit warranted further investigation into the root problem causing this occurrence. CRU management needed to take corrective measures to reverse this trend and generate some alternatives that would lead to an increase in profitability.
Most of CRU’s customers fit into one of three profiles, which differed mainly on the term of the lease. Large corporations replaced their computers every year to stay on the cutting edge of technology, thus leasing computers for a term of one year. Consulting firms and small businesses leased computers for two to four months at a time. Lastly, trade show participants rented very short term, typically for the duration of the show. Although CRU’s customers’ needs for the length of a rental differed, they all expected short lead times, usually one to two days, and quick, accurate delivery and installation of products.
CRU’s...

...A computer is a general purpose device that can be programmed to carry out a set of arithmetic or logical operations automatically. Since a sequence of operations can be readily changed, the computer can solve more than one kind of problem.
Conventionally, a computer consists of at least one processing element, typically a central processing unit (CPU), and some form of memory. The processing element carries out arithmetic and logic operations, and a sequencing and control unit can change the order of operations in response to stored informPrograms
The defining feature of modern computers which distinguishes them from all other machines is that they can be programmed. That is to say that some type of instructions (the program) can be given to the computer, and it will process them. Modern computers based on the von Neumann architecture often have machine code in the form of an imperative programming language.
In practical terms, a computer program may be just a few instructions or extend to many millions of instructions, as do the programs for word processors and web browsers for example. A typical modern computer can execute billions of instructions per second (gigaflops) and rarely makes a mistake over many years of operation. Large computer programs consisting of several million instructions may take teams of programmers years to write,...

...purposes become convenient and serve as a good source of income.
Those benefits from the internet are very productive to man. They put up different
computerrental shops, as well as posh internet café, that increase the competition in
their own field. And one of their main concerns is to improve their system to have fast
and manageable transaction in their business.
That is why we have conducted this study how an internet café can function well by
applying the Visual Fox Pro 6.0 programming language in their system. And to achieve
tasks that will be more manageable, accurate and reliable to their business.
Background of the Study
Lincoln Internet Café located at Bato- Bato St., Riverside, Commonwealth Avenue,
Quezon City started their business in September 2009. Owner Lincoln Avenida
was the one who manages the business. Aside from him, he has also one assistant that
helping him in the café.
The internet café uses manual system in recording the usage of their computers. They
use a log-book that contains the following list: computer number, time in and out, time to
be consumed and the amount to be paid. Aside from this task, the assistant is also
obliged to ask or remind the customer if they are going to extend their time or they
about to end their transaction. After that, they encircle the computer number, calculate it
by computing the time the customer...